KPI stands for key performance indicator. KPIs are the specific, quantifiable measures by which an organization evaluates its success. KPIs come from two main sources. The first is that they can cascade down from policy deployment and are linked to an improvement target. In that situation, a key performance indicator Read more…
CEDAC is an acronym that stands for cause and effect diagram with the addition of cards. It is a very specific way of building a fishbone diagram in which team members contribute ideas written on 3 x 5 cards or Post-it notes. CEDAC is a problem-solving tool that relies on Read more…
“Bowling chart” is the nickname given to the tracking sheets used to monitor either KPIs or policy deployment objectives. Its name comes from the similarity to a bowling scorecard. You may also hear the term “bowler” used to describe these forms. The form compares the targets (plan) to actual performance Read more…
In the generic definition, annual objectives are simply the company’s goals for a calendar year. In most cases these goals should target a degree of improvement. In a Lean organization, however, there’s a much more specific definition for annual objectives. It is a key component of policy deployment. Strategies are Read more…
A run chart is a tool used to show a change in a value over a period of time. It depicts a time-ordered series of data plots with time on the X-axis (horizontal) and the value of the data on the Y-axis (vertical). Run charts are particularly powerful because they Read more…
While continuous improvement is a great and wonderful thing, it has one glaring weakness. You have to be right when you define what improvement actually is. If you missed the mark, you’ll just get more effective at doing the wrong thing.
One trick that you can use to make sure that your definition of improvement is correct is to look at yourself through the eyes of your competitor. Imagine that you are a marketing manager for the business you most frequently go head-to-head against. What weaknesses would you try to exploit? Which of your own strengths would you try to emphasize? What are your advantages from the customer perspective?
POLL QUESTION: Who has contributed the most to modern Lean?
Modern Lean is the result of a community effort. Many people have contributed their knowledge over the years to form the current collective wisdom that we all share.
Let me start out by saying that, contrary to the title, I am not really advocating changing the name of the PDCA cycle to “Predict-Do-Check-Act”. What I am really pushing for is that part of the planning cycle includes a prediction of what will happen when you make a change. Read more…
What is the origin of Lean? Toyota is commonly credited with being the birthplace of modern Lean. One of the key proponents there, Taiichi Ohno, is commonly thought of as the father of modern Lean. While that is mostly true, there is more to the story. The Toyoda family owned the company that Read more…
Try as we might, we are not always successful at separating work from our home life. Whether it is after hours emails, or simply being unable to clear your mind from job stressors, work can creep into everything you do. When work is challenging, as it might be during a big change, that overlap can cause problems.
I had a glimmer of hope for common sense in the government this week. It turns out that a bill to get the FAA operating at pre-sequester levels had a typo in it. Apparently it was missing an ‘s’ to make ‘accounts’ plural, which would have limited funding. While this bill was needed in the first place due to an inability to effectively solve problems, it was a welcomed surprise that common sense dictated in this case. The actions the bill called for were taken before the bill had to weave its way back through the approval process.